Running a small business can be an exciting and rewarding experience. Dealing with unexpected costs is far less exciting, however. Small Business Insurance can help you protect your new business and yourself from expenses associated with accidents, natural disasters, lawsuits and other such events.
If you don’t yet have insurance for your business, you may be wondering: When is the right time to get covered? Below is some information on small business insurance, when you should buy it and how to get a good deal.
What Does Small Business Insurance Cover?
As you may expect, different types of business insurance protect your new business in different ways. These are some of the most common types of insurance:
- General Liability: This covers your business against losses due to injuries, property damage, medical costs, libel, slander, lawsuits and judgments. In short, it covers a broad range of the liabilities businesses are most likely to deal with.
- Product Liability: If you manufacture a product, you may need this insurance. It covers liability related to defective products that may cause harm.
- Professional Liability: Businesses that provide services may need this to cover them against losses due to malpractice, errors and negligence. Some professions, such as legal and medical work, have special forms of this insurance.
- Commercial Property: If you own significant property and physical assets, this insurance is important. It is similar to homeowner’s insurance only it covers commercial properties.
- Commercial Auto: Coverage for your business’ automotive assets is necessary to operate vehicles owned by your business.
- Workers’ Compensation: People who experience workplace injuries are entitled to compensation for their medical expenses. This insurance protects you against losses from needing to pay worker’s compensation.
- Business Owner’s Policy: This umbrella policy covers many different types of liability. It is a package deal that is helpful to many business owners.
When Should You Start Coverage?
There are a few indicators that you need to get a policy for your business. If you reach any of these milestones, take them as signs to buy insurance:
- Leasing a commercial space
- Hiring an employee
- Landing a major client
- Operating a business vehicle
- Launching a website
Using a commercial space could expose you to liability if anyone gets injured in that space. You could also experience damage to your property in the space, which needs to be covered by an appropriate policy.
Hiring any employees requires that you have workers’ compensation insurance in many places. If you offer a service, you may also want to consider professional liability insurance to protect against losses due to errors. Major clients often require that you have general liability insurance.
Business vehicles need to be covered by automotive insurance by law. Launching a website could expose you to losses due to copyright issues, libel and other legal liabilities. It is best to have general liability insurance to cover you.
There are many other reasons to get insurance. Most businesses legally need to have at least some liability coverage. Speak with an experienced insurance professional to help determine what coverage you need.
What Time of Year Is Best for Enrollment?
The right time of year to buy insurance is when you need the coverage. If you have reached any of the signs to buy insurance or expect to soon, start shopping for insurance. Going without coverage can be a costly mistake.
Insurance policies often operate on contracts of at least a year. Some carry a penalty for switching early, so you may want to consider shopping for new insurance close to the end of your current policy. In other cases, it may make sense to move quickly to take advantage of a good deal.
Get Covered Today
Get coverage to protect your business today. There is never a better time than today to protect your new business.